(Reuters) - Amazon.com ( AMZN ) launched a low-cost ecommerce service called Amazon Haul for some customers in the United States giving them a selection of products at $20 or less, the online retailer said on Wednesday, as it looks to take on Chinese firms Shein and PDD Holdings' ( PDD ) Temu.

In August, Amazon ( AMZN ) CEO Andy Jassy said average selling prices were falling as customers were trading down to cheaper items and buying more essential goods.

The company said that the majority of products will be priced $10 or under, with some costing as little as $1.

The new low-cost service will be available within its app and users could search for "Haul", the company said, adding that it will be available for customers when they update their Amazon ( AMZN ) shopping app next.